Abstract:
The main objectives of this research are assessing practices, Opportunities and challenge of
Adopting mobile banking in case of Oromia Bank. The study was used descriptive research
design. Both qualitative and quantitative research approaches have been employed. The
study's target group consists of Oromia Bank customers and employees who use or are
involved in mobile banking services. This study's sample method was a combination of
stratified random sampling and purposive sampling. The data was collected from at least 384
Oromia Bank customers and employees. In addition, the study also used semi structured
interview to get information from managers and employees of the bank at selected mobile
banking department that are assumed to have close information on the service. Both primary
and secondary sources of data were used to get in depth knowledge. The data were collected
through questionnaires analysed by using simple descriptive statistics (SPSS). The data that
was collected through qualitatively such as interview, survey, observation, and FGD, was
explained by content analysis. The finding of the study indicate mobile banking practice
mobile banking system saves time of customers, mobile banking service increase customer
satisfaction and mobile banking services enable users to complete banking activities more
easily. Moreover, the infrastructural challenge faced the bank was low level of internet
penetration. One of infrastructure challenge of Oromia mobile banking system was poorly
developed telecommunication infrastructure. Mobile banking infrastructural challenge was
slow internet connection. The mobile banking infrastructural challenges were low level of
internet penetration, by poorly developed telecommunication infrastructure and slow internet
connection. Regarding to illiteracy related challenges are lack of educated and efficient staff
in mobile banking context is illiteracy related challenge of mobile banking in Oromia Bank.
Likewise, that lack of customer awareness with mobile banking service. Customers’ ability to
access mobile banking service. Customer has low levels of digital literacy. Lack of demand
from customer’s side was illiteracy related challenge of mobile banking in Oromia Bank. In
recent years, due to its convenience, mobile banking is the latest electronic banking channel,
so in this context, it is important to each bank to formulate more relevant acts, policies, and
adopt operative guidelines especially when there will be interruption on the service. Oromia
Bank should prepare various capacity building activities for banks regarding mobile banking
operation and provide incentives for banks to invest rigorously on ICT and use of this
services.
